Property owners in Victoria are facing new challenges as oversight on rent increases tightens. Authorities can now reject rent hikes that exceed the current Consumer Price Index, which stands at 3.3%.
The main tenants’ association has urged affected renters to challenge unjustified increases in an effort to curb rising rents. Consumer Affairs and the civil tribunal have been empowered to assess the fairness of rent increases based on several factors, including the size of the increase, the condition of the property, and the tenant’s circumstances.
The new regulations require landlords to use standardized application forms while prohibiting the imposition of any additional fees on tenants. Violations may result in fines of up to $12,000 for companies, while individuals face lower penalties.
The Minister for Consumer Affairs stated that these measures aim to protect tenants amid the cost-of-living crisis, while investors have raised concerns about their potential impact on the property market. Other reforms include requirements for properties to meet safety standards, a ban on unjustified evictions, and mandatory advance notice for rent increases or intentions to evict.
The government has also launched a $98 million fund to support tenants and raise awareness of their rights. Tenants affected by unfair rent increases have a 30-day window to file a free objection through Consumer Affairs. However, the expansion of grounds for reviewing such appeals has raised concerns among some investors about the future of the real estate sector.
